A Vancouver company hopes to tap into the lucrative Chinese beer market by entering into a joint venture with Calgary’s CRAFT Beer.
Vancouver’s First Growth Holdings Ltd. will be funding 85% of the partners’ first restaurant in China, which is set to open in Shanghai later this year. This will be the first of five restaurants the two companies plan to open in China.
“We have researched the beer culture in China thoroughly, and we know there is nothing like CRAFT Beer there,” First Growth president Paul Guedes said.
“We are thrilled to bring CRAFT Beer into China, which is the largest beer consumption market in the world.”
In addition to having two restaurants in Alberta, CRAFT has a location in Vancouver’s Olympic Village in the iconic Salt building. At 13,000 square feet and with 350 seats, it is one of the largest drinking venues in the city.
This restaurant was the subject of some controversy when it set up shop in 2013. At the time, some Olympic Village homeowners lobbied the city to stop CRAFT from opening. These owners were fearful that the restaurant would devalue their properties and act as a deterrent to potential unit buyers.
First Growth already has a hand in the alcohol market with its WineOnline.ca brand. This service, only available in Alberta and Ontario, allows customers to order wines online and have them delivered to their homes or workplaces.
First Growth and CRAFT have been working together for a year to get the deal underway. CRAFT founder and presiden t PJ L’Heureux said he is excited to expand into China.
“We have been to Shanghai several times and the size of the market never seizes to amaze me with 24 million people in Shanghai and approximately 130 million people within an hour,” L’Heureux said.
“The opportunities are endless.”
CRAFT is currently looking across Canada for possible future locations and hopes to open one or two restaurants in the next five years.
-With files from Glen Korstrom
(Also see: Richmond winery cashes in on Asia's growing thirst for Canadian berry wines )
